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Mar 31, 2020
Celanese Q1 2020 Earnings Report
Celanese reported first quarter earnings, highlighting resilient cash generation and a strong balance sheet.
Key Takeaways
Celanese Corporation reported a solid first quarter performance with GAAP diluted earnings per share of $1.88 and adjusted earnings per share of $2.29 on net sales of $1.5 billion. The company demonstrated resilience through its Engineered Materials and Acetyl Chain commercial models, generating robust operating cash flow of $259 million and free cash flow of $135 million, while also implementing structural cost and capital reduction actions.
Celanese delivered sequential growth in operating profit and adjusted EBIT.
The company generated robust operating cash flow of $259 million and free cash flow of $135 million.
Celanese retains substantial financial flexibility due to continued liquidity and balance sheet strength.
The company has identified and implemented structural cost and capital reduction actions.
Celanese
Celanese
Celanese Revenue by Segment
Revenue by Segment
Engineered Materials Revenue
CapyFin.comAcetyl Chain Revenue
CapyFin.com Forward Guidance
Celanese anticipates generating $300 to $400 million of incremental cash through productivity, working capital management, and capital expenditures prioritization to offset demand and earnings challenges.
Positive Outlook
- Well-positioned to meet current macro-economic challenges.
- Committed to keeping employees safe.
- Focused on meeting customers' needs.
- Dedicated to delivering sustained value for shareholders.
- Taking actions on productivity, working capital management, and capital expenditures prioritization.
Challenges Ahead
- Uncertainties regarding the duration and impact of the coronavirus (COVID-19) pandemic.
- Suspension of previously announced annual adjusted earnings per share guidance for 2020.
- Reduced consumer activity in the Western Hemisphere impacting demand.
- Potential impact on the second quarter demand.
- Weaker than anticipated demand environment.
Revenue & Expenses
Visualization of income flow from segment revenue to net income